One of the most attended global meetings and media coverage, is undoubtedly the G20 summit, which brings together the 20 nations with the largest economies in the world. In this year, the G20 summit in Buenos Aires, Argentina, the leaders of these nations reiterated their commitment to regulate the "crypto-assets" as part of a statement issued on Sunday after the meeting.
The commitment came amidst a broader section on the creation of "an open and resilient financial system," which the document notes as "is crucial to supporting sustainable growth," stating:
"We will continue to monitor and, if necessary, address the emerging risks and vulnerabilities in the financial system; and, through continuous regulatory cooperation and supervision, addressing fragmentation. We look forward to continued progress in achieving strong non-bank financial intermediation. "
According to the statement, it is intended that with the taxes and regulations towards cryptocurrencies money laundering can be combated. The Group of Twenty affirmed that an open ecosystem is important to support innovation and economic growth, but that international standards must be established to regulate this new class of assets.
The situation implies an international collaboration, due to the fact that cryptocurrency players do not have a defined geographical jurisdiction or limitation.
Due to the above, the G20 agreed on the need to regulate cryptocurrencies in accordance with the standards of the Financial Action Task Force (FATF), to prevent money laundering and terrorist financing. Because, the FATF, is an intergovernmental organization that represents countries, whose purpose is to combat money laundering and terrorist financing.
Parallel to this, today, more and more cryptographic entrepreneurs are coming to the conclusion that the cryptocurrency market must become a class of regulated assets before institutions such as pension funds, traditional asset managers and investors of Wall Street enter the crypto market and make important movements.
This is not necessarily a bad thing; If we see it on the positive side, it is better to charge taxes for the cryptocurrencies instead of being considered illegal. Although personally, I do not share the idea of "forcibly extracting" citizens' wealth, and above all for its misuse, until now it is part of the environment and world order in which we live.
Governments will always look for ways to take a percentage of any asset. Likewise, the leading Crypto companies around the world have been looking for greater standardization and representation in international markets, it is an inevitable step if the intention is to capture institutional money.
We must remember that, a taxed currency is an official currency. Governments that accept taxes paid with Bitcoin will increase currency circulation and encourage its adoption, which in turn will make the largest companies around the world more likely to accept these payments. In fact, such a framework would convert currency into a much more legitimate currency and, therefore, into a more viable form of investment.
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